Nike will slash its global workforce by about two per cent as the sportswear giant pushes on with efforts to reduce costs.
Nike says it will cut about two per cent of its total workforce, or more than 1600 jobs, as the US sportswear giant looks to cut costs after flagging weaker profits this year.
Nike's global peers Adidas, Puma and JD Sports , too, have warned of weaker earnings this year, as consumers cut back on non-essential spending.
Nike said in a statement: "The actions that we're taking put us in the position to right-size our organisation to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger."
In December, Nike had outlined a $US2 billion ($A3.1 billion) savings plan over the next three years through steps including tightening the supply of some products, improving its supply chain, reducing management layers and increasing the use of automation.
The company had also announced that it would incur about $US400 million to $US450 million in employee severance costs in the third quarter.
Nike had approximately 83,700 employees worldwide as of May 31, 2023, according to a company filing.
The Wall Street Journal, which first reported the news, said the cuts were expected to start on Friday, and a second phase would be completed by the end of the current quarter.
The layoffs are not expected to impact employees in stores and distribution centres or those in its innovation team, the report added.
Nike chief executive John Donahoe said the company is using its resources to increase investment in categories like running, women's apparel and the Jordan brand, according to a memo reviewed by the WSJ.